There's no stopping the price of Platinum: Yesterday, it climbed above the $1,400 per troy ounce mark for the first time since September 2014, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen and commodity analyst Barbara Lambrecht note.
"This means it has gained a good $400 or around 40% within six weeks. Market reports point to the increased interest of the Chinese in Platinum jewellery now that Gold jewellery has become so expensive. And indeed, China's Platinum imports in May were the highest since April 2024, but the speed and extent of the price rally indicate overheating and is a call for caution. Especially as there was no real fundamental trigger for the price increase."
"The supply deficit on the Platinum market is nothing new and has hardly supported the price in recent years. On the contrary, at the end of 2023, the price fell well below the $900 per troy ounce mark for a time, although the market had slipped into a supply deficit that year according to the World Platinum Investment Council."
"Last year, the supply deficit was at a record high without the Platinum price benefiting significantly. The main reason for the price increase is therefore likely to be the high discount to Gold, which is apparently considered too expensive. It is fitting that the Gold price is currently struggling to make up ground, although speculation about interest rate cuts in the US is picking up speed again."